Mounjaro And Zepbound Power Eli Lilly's 54% Revenue Jump In Q3, Hikes 2025 Forecast

Core Insights - Eli Lilly and Co. reported better-than-expected third-quarter earnings, leading to an increase in stock price and an upward revision of its annual forecast [1][8] Financial Performance - Quarterly revenue reached $17.60 billion, a 54% year-over-year increase, surpassing the consensus estimate of $16.02 billion, driven by a 62% increase in volume, partially offset by a 10% decrease due to lower realized prices [2] - Adjusted earnings per share were reported at $7.02, significantly up from $1.18 a year ago, exceeding the consensus of $5.70 [3] - Key Products revenue grew to $11.98 billion in Q3 2025, primarily driven by Mounjaro and Zepbound [2] Product Performance - Mounjaro's revenue increased by 109% to $6.52 billion, with U.S. revenue at $3.55 billion, reflecting a 49% increase [4] - Zepbound revenue surged 184% to $3.57 billion, driven by increased demand [5] - Verzenio revenue rose 7% to $1.47 billion, supported by volume growth [5] Profitability Metrics - Gross profit increased by 57% to $14.59 billion, with a gross margin of 82.9%, up by 1.9 percentage points due to a favorable product mix [5] Future Outlook - The company raised its fiscal year 2025 sales guidance from $60 billion-$62 billion to $63 billion-$63.5 billion, compared to the consensus of $61.65 billion [6] - Adjusted earnings guidance for 2025 was increased from $21.75-$23.00 to $23-$23.70, against a consensus of $22.18 [6] Investment and Expansion Plans - Eli Lilly announced a planned investment of over $1.2 billion to expand and modernize its manufacturing site in Puerto Rico, with construction expected to begin in 2026 [6][7] - The new facility will integrate advanced technologies and expand production capacity for oral solid medicines, including orforglipron, Lilly's first oral weight loss drug [7] - The project is expected to create up to 1,000 construction jobs and 100 high-tech manufacturing positions [8]